U.S. stock futures edged higher on Friday, driven by a pullback in Treasury yields that provided a fresh boost to technology shares, while traders monitored developments in U.S.-Iran talks and oil markets ahead of the Memorial Day holiday weekend. At 4:55 a.m. ET, Dow e-minis added 151 points, or 0.3%, while S&P 500 e-minis gained 23 points, or 0.31%. Nasdaq 100 e-minis rose 148 points, or 0.5%, reflecting renewed appetite for growth stocks.
The improved risk sentiment came as Naeem Aslam, chief investment officer at Zaye Capital Markets, noted that geopolitical risks appeared “less immediately damaging for sentiment.” This allowed investors to focus on corporate earnings and the broader economic outlook.
Wall Street enters Friday’s session near record levels, not from a trough. On Thursday, the S&P 500 closed 0.2% higher at 7,445.72, the Dow Jones Industrial Average climbed 0.6% to 50,285.66, and the Nasdaq Composite edged up 0.1% to 26,293.10. Stocks shook off earlier losses after oil prices reversed late in the session.
Trading remains open today, with the New York Stock Exchange operating its regular 9:30 a.m. to 4 p.m. ET schedule. However, the Securities Industry and Financial Markets Association (SIFMA) recommends an early close for fixed income desks at 2 p.m. Eastern on the Friday before Memorial Day, which is observed on Monday, May 25, 2026.
Oil prices remain a key stress test for the market. Brent crude added about 2% to $104.96 a barrel, while U.S. West Texas Intermediate rose 1.35% to $97.64, as traders kept a close watch on the Strait of Hormuz, a critical waterway for global energy shipments. Matt Britzman of Hargreaves Lansdown described the situation as unpredictable, while Deutsche Bank’s George Saravelos warned that persistently high oil prices could be a “recipe for a lot of inflation.”
Equity gains are running into interest rate concerns. UBS Global Wealth Management raised its 2026 S&P 500 target to 7,900 from 7,500, citing steady consumer spending and robust demand for data centers. However, UBS also flagged the Strait of Hormuz as a potential risk to the bull market. Jim Baird, chief investment officer at Plante Moran Financial Advisors, noted that higher long-term Treasury yields could put a “practical lid on equities,” especially with the upcoming PCE inflation data—the Fed’s preferred price gauge—expected to sharpen the test next week.
Technology stocks remained the focal point before the bell. Nvidia (NVDA) projected second-quarter revenue of $91 billion, surpassing the analyst consensus of $86.84 billion, according to LSEG. CEO Jensen Huang told analysts, “We should be growing faster than hyperscale capex.” However, eMarketer’s Jacob Bourne questioned whether the “AI buildout has durability” as rivals AMD and Intel pursue their own chips to challenge Nvidia’s lead.
Workday (WDAY) shares surged nearly 12% in premarket trading after the company reported first-quarter revenue of $2.54 billion, topping estimates of $2.52 billion, and beat profit forecasts. Valoir CEO Rebecca Wettemann noted that Workday still needs to demonstrate that its AI provides tangible customer value to escape the “SaaSpocalypse narrative,” a Wall Street term for bearish views on SaaS stocks.
Take-Two Interactive (TTWO) attracted buyers as the video-game publisher reaffirmed the November 19 launch date for “Grand Theft Auto VI,” despite projecting fiscal 2027 bookings below expectations. Wedbush Securities’ Alicia Reese called the launch date the “primary focus,” highlighting Rockstar’s history of delaying major titles. Estée Lauder (EL) shares rose after the company and Spain’s Puig called off merger talks that could have formed a premium beauty group to challenge L’Oréal. RBC Capital’s Nik Modi expressed relief that the deal fell through, citing investor concerns about timing, governance, and execution risk while Estée Lauder is still in turnaround mode.
On the economic front, the University of Michigan’s preliminary May consumer sentiment index came in at 48.2, down from April’s 49.8. Final numbers are due at 10 a.m. ET. Joanne Hsu, who leads the Surveys of Consumers, noted that households still “feel buffeted by cost pressures.” Additionally, Kevin Warsh is scheduled to be sworn in as Federal Reserve chair at 11 a.m. ET, drawing attention back to monetary policy.
